Layer-3 ‘points chain’ stack seeks to introduce loyalty points to Base.
A new project called Stack has recently launched on the mainnet as a points chain built as a layer-3 on top of Base. This initiative comes as DeFi projects have been utilizing “points” to incentivize usage on their platforms, with the hope of determining allocation in a future token airdrop.
The world of crypto is witnessing a surge in points mania, with users gaining exposure to points on platforms like Pendle and trading them on Whales Market. DeFi-focused hedge funds are also accumulating these currently-valueless points on behalf of liquidity providers.
Backed by investors such as Archetype Ventures, Balaji Srinivasan, and Farcaster co-founder Dan Romero, Stack aims to bring points systems onto the blockchain. The project, founded by Graeme Boy, who previously co-founded the decentralized platform Mirror, is intentionally limited in scope.
In an effort to align with Ethereum co-founder Vitalik Buterin’s vision for non-transferable NFTs, Stack does not allow native trading of points on its platform. The project operates as a layer-3 blockchain, with points attestation data rolling up to Base’s layer-2 blockchain, which then connects to Ethereum. Despite potential security concerns, Stack emphasizes the benefits of blockchain transparency and low gas fees on layer-3s.
As token airdrops gain popularity, Stack’s supporters believe that on-chain points attestations will become essential in the crypto industry. While points managed on Stack are not meant for trading on open markets, there is a possibility that points program managers could make them exchangeable in the future. This concept is similar to loyalty programs like American Express’s, where points can be converted into Delta Skymiles.
While blockchain-based points programs have been a niche concept, not everyone sees the value in a points chain. Some question the necessity of such a system, likening points to ERC-20 tokens without transferability.
However, Stack’s points chain idea has gained attention from investors, as the project recently secured a million seed round after presenting at the Coinbase Ventures Summit. Jesse Pollak, the founder of Base, praised the project, highlighting the move towards bringing everything on-chain, including points. Emphasizing the benefits of building on-chain for speed, user reach, and transparency, Pollak believes that the future of crypto lies in embracing on-chain solutions.